Each state has its own laws regarding estate planning and real estate. Property laws can vary significantly, affecting everything from the way property titles are held to how estates are taxed and probated. Therefore, the first step in planning your estate is to understand the specific laws that apply in each state where you own property. This may require consultation with estate planning attorneys who are licensed in each respective state to ensure all local regulations are met.

One of the primary challenges of owning property in multiple states is the possibility of having to go through multiple probate processes upon death. Probate can be time-consuming and expensive, particularly if it needs to be conducted in several states. To circumvent this, many estate planners recommend placing the out-of-state property in an limited liability company or perhaps a revocable living trust.

While Texas does not have an estate tax, if you own property in multiple states, you might be subject to estate taxes in each of those states, depending on their laws. Some states have higher estate tax thresholds than others, and a few have no estate taxes at all. Planning strategies might include shifting your domicile to a state with more favorable tax laws or restructuring ownership of properties to minimize the tax burden.

It’s also important to consider the impact of capital gains taxes and how they interact with estate taxes. In some cases, keeping property in the family can lead to significant tax advantages over selling it before death. An estate planning attorney can provide guidance on how to best manage these tax implications.

Organize and maintain detailed records for each property, including deeds, mortgage documents, insurance policies, and a list of all maintenance activities. This documentation will be invaluable for the executor of your estate or the trustee managing the trust.

As laws change and your personal circumstances evolve, so too should your estate plan. Regular reviews and updates will help ensure that your estate plan continues to reflect your wishes and adapts to any new laws or changes in your asset portfolio.

If your estate plan is complex, consider holding a family meeting to discuss your plans and the responsibilities each family member may have. This can help prevent confusion and conflict after your passing, ensuring everyone understands your intentions and the legal landscape.

Owing property in multiple states adds a layer of complexity to estate planning, but with careful preparation and expert advice, you can ensure that your estate is handled smoothly. Limited liability companies, trusts, strategic tax planning, and regular updates are key components of an effective multi-state estate strategy. Consulting with professionals who understand the nuances of multi-state estate planning will provide peace of mind, knowing that your legacy is secure and your wishes will be honored.

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Planning for the future can be overwhelming, but creating a care plan is one place to start for a family dealing with a member who has a disability.  Your loved one might qualify for local or federal benefits and you might be able to save for their needs in a tax-advantaged ABLE account.  For long-term planning, you might want to consider a trust for an individual with special needs.  When you have a family member with special needs, you think about so many things all at once that future planning often gets shunted aside in favor of getting through today. But most of the challenges you face are not temporary. So when you are ready, you might consider thinking through the whole life cycle of help that is ahead of you.

A good test for when you need to do advanced financial planning for an individual with special needs is if you anticipate them needing assistance caring for themselves through adulthood.  When you determine the severity of the need, you can then figure out what level of local and federal benefits are involved.

Individuals lose eligibility to certain government benefits if they have more than $2,000 in countable resources ($3,000, if married), according to the Social Security Administration.  But by saving in an ABLE account, some families can help shield contributions from that countable-resources limit. What’s more, after-tax contributions to these accounts can grow tax-deferred, and if withdrawals are used for qualified disability expenses, which includes but is not limited to rent, food, transportation, education and employment training, health care, and personal support services, any earnings on such distributions will be federal income tax-free. These accounts don’t make sense for everyone, so consult with a financial advisor to see if it is a good strategy for you.

It’s important to know that ABLE accounts do have an annual contribution limit.  In 2025, the limit is $19,000 from all contributors in aggregate.  However, the ABLE to Work provision of the Tax Cuts and Jobs Act of 2017 allows ABLE account owners who can work to save an additional amount equal to the lesser of their compensation for the taxable year, or an amount equal to the federal poverty level, which is $15,650 per single-person household in 2025.  Additionally, if the total assets in the ABLE account exceed $100,000, Social Security for the person with disabilities may be suspended.

It can be hard for families to look far down the road and think about what happens when primary caregivers are no longer able to care for their loved one, but setting up for the future can prevent mistakes later on that could negatively impact benefits and cause conflict.

For instance, it may not be a good idea to list a person with special needs as the beneficiary on a parent’s financial and retirement accounts. If the assets go to the child, that could interfere with their ability to receive Social Security income for disability benefits.

There are several types of trusts that many families establish for the benefit of individuals with special needs. One of the most common is a third-party special needs trust, which is created by someone who wants to leave money for a dependent with special needs but doesn’t want that person to lose out on government benefits. The trust can be established by a Will or created during the benefactor’s lifetime. The creators of the trust appoint a trustee who has discretion over when and how funds are distributed. The trustee cannot distribute money directly to the dependent, but they can pay for certain items and services not covered by the dependent’s monthly Supplemental Security Income (SSI) for disability. Upon the death of the dependent, whatever assets are left in the trust can be distributed according to the creator’s wishes as specified in the terms of the trust.  A third-party special needs trust can be used in conjunction with an ABLE account, so families needn’t choose one or the other.

All estate plans need to evolve over time to keep pace with changes in people’s lives and financial situations. When your family is dealing with an individual who has special needs or disabilities, it is even more important to include them in your plans.  To make sure your plan stays current, review it every 3 to 5 years, or whenever your life or your family changes in a major way. That way you can be confident that your loved ones will be cared for when you’re no longer here to look after them financially.

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Very few folks have an estate worth more than $15,000,000 (or $30,000,000 for a couple).  Texas does not have a separate estate tax or income tax.  Thus, most estates in Texas can be handled through a well written Last Will and Testament.

If you own a business, real estate, farm,  or ranch, this increase to the Federal estate tax exemption amount is important to your estate.  When you consider the value of businesses, real estate, houses, equipment, investment or savings accounts, vehicles, and cattle, an exemption amount lower than $10,000,000 could be a problem.

Before the estate exemption amount was raised, the use of marital deduction trust clause or family limited partnership were the norm for estate planning in those families with substantial assets.  These marital deduction trusts  were commonly used prior to 2001 when the Federal estate tax exemption limit was $600,000.00.

Another beneficial planning tool is to gift a portion of your cash into a trust that purchases a life insurance policy on you, a parent, or a grandparent. That policy is then owned by the trust, and at death the policy pays into the trust—at a rate of two to ten times the size of the original gift. TAX-FREE. Zero tax. Yes, not one penny to Uncle Sam. In fact, that could leave your family with enough to pay the estate tax and give generously to charities and foundations that you love, as well as provide additional resources for your loved ones.

Along with an increase to the estate tax exemption amount, the annual exclusion for gifts was raised to $19,000, per individual in 2025 and into future years.  Parents and grandparents may prefund children’s education through 529 accounts, or paying tutition on behalf of another directly to the school or other educational provider.  If you only are paying tuition, the exemption is limited to just tuition fees and no other educational expenses.  Other options include paying medical expenses, leveraging lifetime gifts, and charitable giving.

In addition to the Federal estate tax exemption, you should pay close attention to the Federal capital gains tax.  This is a tax placed on the appreciated value of real property and investment accounts.  To ensure that your family does not have to pay any capital gains tax, transferring property subsequently after your death is important.  When property is transferred during your life, the gift tax amount is not the only consideration.  By gifting property during your lifetime, you could cause your beneficiary to be in a situation that results in the payment of capital gains taxes of up to 20% of the gain.

Many people are enticed into creating living trusts or revocable trusts.  However, you should meet with an attorney experienced in estate planning to see what is the best vehicle for your estate planning needs in your state.  They should also discuss with you the importance of powers of attorney (financial and medical), advanced directives (aka living wills) and the other associated documents to make sure those you trust are empowered to assist you without putting your assets at risk (i.e., Do NOT list them on your accounts).

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Incapacity isn’t just about catastrophic accidents or permanent disability. It can be temporary. It can come in the form of a long recovery after surgery, a cancer diagnosis that takes you out of the office for months, or even an extended leave to take care of a family emergency. The bottom line is this: if you can’t be there, your business still needs to function.

The Real Risk of No Plan

As a business owner, you wear a lot of hats. You oversee operations, make the big decisions, manage key relationships, and keep the business financially afloat. So what happens when you suddenly can’t be in the office for an extended period?

Without a clear incapacity plan, the absence of leadership can create confusion—and fast. Employees might not know who’s in charge. Decisions could be delayed or made by the wrong people. Worse, family members involved in the business may assume they should step in, even if they’re not the best fit.

A lack of structure during your absence can lead to internal power struggles, operational breakdowns, and even financial loss.

What Incapacity Planning Looks Like

Incapacity planning is an extension of good estate planning. It’s about protecting your business during your lifetime—not just after you’re gone.

Here’s what a solid incapacity plan should include:

A designated decision-maker: Someone who knows the business, commands respect, and can make tough calls when you’re unavailable.

Clear communication: If your family works with you, set expectations early. Being related doesn’t automatically make someone the best person to lead.

Legal authority: Make sure your chosen backup has the legal power to act on your behalf—this often includes creating a durable power of attorney or incorporating provisions into your business operating agreement.

Operational systems: Document key processes, vendor contacts, passwords, and protocols. If you’re out, someone needs to step in seamlessly.

Why Family Isn’t Always the Best Fit

Many business owners assume a spouse, sibling, or child will take the reins if something happens. But that assumption can be risky. Family members may not have the right experience, temperament, or relationships to lead the business effectively. And assuming they’ll step up—or that others will accept them in the role—can cause unnecessary tension or confusion.

Choosing the right person means thinking about what your business actually needs to stay stable in your absence, not just who’s closest to you.

Build a Plan Before You Need One

At the end of the day, estate planning isn’t just about preparing for death—it’s about protecting what you’ve built during your lifetime. For business owners, that means thinking beyond succession and addressing incapacity head-on.

If you haven’t created a plan for who leads your business when you can’t, now is the time. We can help you identify the right person, create the necessary legal documents, and build a plan that protects your employees, your income, and your peace of mind.

Consulting with professionals who understand business operations when estate planning will provide peace of mind, knowing that your legacy is secure and your wishes will be honored.  Therefore, see an attorney with business and estate planning experience.  They should be able to work with you, your financial planning team and accountant to create the best plan.

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Using your residential property for a business reminds me of the importance of knowing the coverage your homeowners policy provides and the importance of business premises insurance.  Reading and understanding all of the language in a homeowner’s or business liability  insurance policy are not formalities to be skipped over while searching for the signature line.  As with any contract, the fine print can have real and lasting consequences, and its contents will control over any contradictory verbal assurances.  Taking the time to understand the terms of their policies might have headed off bad outcomes for homeowners in two recent cases.

Joan bought property consisting of a home, two barns, and other outbuildings.  She also purchased a homeowners’ insurance policy that excluded coverage for any nondwelling structure that was rented out “unless used solely as a private garage.”  Joan rented the barns to a commercial marina, which used them for storage of customers’ boats.  When one of the barns collapsed due to a storm, Joan submitted a claim for loss of the barn.

The insurer denied coverage, prompting Joan to point out that the rental exclusion should not apply because the marina was using the barn as a “private garage.”  Her point made sense as far as it went, but the insurer won because of a separate exclusion from coverage for any nondwelling “used in whole or in part for business purposes.”  Joan’s main occupation was a financial analyst, and she brought in only a few thousand dollars by renting out the barn.  But all that was necessary for the business purposes exclusion to apply was that the insured regularly engage in the conduct with an intent to profit.

It was significant for the court that, by failing to disclose her conduct, Joan had prevented the insurer from knowing the risks it was insuring.  The purpose of a business pursuits exclusion, after all, is to rule out coverage for a whole set of risks and liabilities flowing from business activity.  It did not matter that the damage to the barn was not caused by the boats that were stored there for profit.

Many of you may have seen or received advertisements for identity theft coverage.  However, if you review your homeowners insurance policy, you may find that it contains coverage for identity fraud expense coverage.  Depending on your specific policy, this could cover credit card and identtity fraud related to the title to your property.  Before signing up for identity theft, sit down and read your current homeowners policy.

You may be surprised to find that you have coverage for loss of refriderated products as well.  With some of our weather events, we lose power.  When this loss of power is extended, then you may lose that deer meat you harvested or that calf you had butchered.  If you have the right kind of coverage in your homeowners policy, you will be covered for these losses.

Before a storm effects you, sit down with your insurance agent to discuss and make sure you have the coverage you want.  When entering a contract, particularly one prepared or furnished by another, it is a good idea to review the document carefully.  A better practice would be to have your attorney review the document for you.  Do not put yourself in the position of reviewing your contract after a problem or claim has arisen.  It may be too late.

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Senate Bill 17

SB 17 is one of several measures introduced this session aimed at restricting certain types of foreign ownership of land in Texas. In its most recent version, which passed the House earlier this month, SB 17 would add a new Subchapter H to Chapter 5 of the Texas Property Code, titled “Purchase or Acquisition of Real Property by Certain Foreign Individuals or Entities.” The bill initially passed the Senate in March and has since been amended by the House. Notably, the House version expands the scope of the bill by granting the Governor authority to designate additional countries and transnational criminal organizations whose nationals or entities would be prohibited from acquiring real property in Texas.

Senate Bill 647

SB 647 is one of two bills introduced this session aimed at combating deed fraud. It proposes amendments to Section 51.901 of the Texas Government Code to enhance protections against the fraudulent filing of property-related documents. Specifically, the bill authorizes county clerks to send written notice to the last known property owner when a recorded instrument purports to create a lien or transfer an interest in real property—particularly when the owner’ s address differs from that of the grantor, obligor, or debtor named in the document. Additionally, SB 647 empowers clerks, upon consultation with the district or county attorney, to refuse to file or record a document if there is probable cause to believe it is fraudulent or if the filer fails to provide required supporting documentation as specified in the statute. The bill passed the Senate and was recently reported favorably out of a House committee.

Senate Bill 648

SB 648 is the second of two bills this session aimed at addressing deed fraud. The bill introduces enhanced recording requirements for certain real property instruments, particularly when such documents are filed by individuals or entities other than attorneys, title agents, title companies, or escrow companies that provide closing, settlement, or comparable transaction services. Under SB 648, if an instrument is submitted for recording by someone outside of these professional categories, the following additional requirements must be met: the instrument must be signed by both the grantor and the grantee in the presence of two subscribing witnesses, and all signatures—including those of the witnesses—must be acknowledged. The bill also imposes stricter requirements for filing affidavits of heirship. Specifically, if the affidavit is filed by someone other than an attorney or title-related professional, it must be signed by the affiant and acknowledged by each person named as an heir, again in the presence of two subscribing witnesses. SB 648 would take effect immediately upon receiving a two-thirds vote in both chambers. It has already met that threshold in the Senate and is currently under consideration in the House.

Senate Bill 2550

SB 2550 addresses five statutes that require sellers of real property to provide specific notices to buyers pertaining to the surface estate, which do not extend to the mineral estate or associated water rights. While current law exempts transactions involving the sale of mineral rights from these notice requirements, it does not provide a similar exemption for the sale of groundwater or surface water rights. SB 2550 corrects this inconsistency by extending the exemption to include transactions involving only groundwater or surface water rights. The bill has passed both chambers of the Legislature and was sent to the Governor for signature on May 13.

Once the 89^th Regular Session of the Texas Legislature ends, a comprehensive report will be prepared for all the changes made in this session.  To view the full text of these and other bills, please visit the Texas Legislature Online (TLO) website.

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In Texas, water rights depend on whether the water is groundwater or surface water.

Generally, Texas law has held that groundwater belongs to the landowner. Groundwater is governed by the rule of capture, which grants landowners the right to capture the water beneath their property. The landowners do not own the water but have a right only to pump and capture whatever water is available, regardless of the effects of that pumping on neighboring wells.

Surface water, on the other hand, belongs to the state of Texas. It can be used by a landowner only with the state’s permission.

Groundwater

Water found below the earth’s surface in the crevices of soil and rocks is called percolating water or, more commonly, groundwater. Texas groundwater law is judge-made law, derived from the English common law rule of “absolute ownership.” Groundwater belongs to the owners of the land above it and may be used or sold as private property. Texas courts have adopted, and the legislature has not modified, the common law rule that a landowner has a right to take for use or sale all the water that he can capture from below his land.

Because of the seemingly absolute nature of this right, Texas water law has often been called the “law of the biggest pump.” Texas courts have consistently ruled that a landowner has a right to pump all the water that he can from beneath his land regardless of the effect on the wells of adjacent owners. The legal presumption in Texas is that all sources of groundwater are percolating waters as opposed to subterranean rivers. Consequently, the landowner is presumed to own underground water until it is conclusively shown that the source of supply is a subterranean river.

The law with respect to ownership of subterranean rivers is not settled in Texas. Both stream underflow and subterranean rivers have been expressly excluded from the definition of underground water in Section 52.001 of the Texas Water Code.

The practical effect of Texas groundwater law is that one landowner can dry up an adjoining landowner’s well and the landowner with the dry well is without a legal remedy. Texas courts have refused to adopt the American rule of “reasonable use” with respect to groundwater.

Winds of change are blowing with regard to groundwater.  The case of Cactus Water Services LLC v COG Operating LLC is now before the Texas Supreme Court.  At the root of the case is who owns produced water.  This case will determine whether or not produced water from oil and gas drilling belongs to the landowner.

Produced water is the water that is comes back up out of the well bore as the well is completed.  Produced water is highly concentrated with salt and chemicals from the fracking process, thus making it harmful to fresh groundwater supplies as well as fields and pastures used for agricultral production.

Produced water must be handled carefully to make sure it does not spread out on the surface and leach or migrate back into the ground.  That much salt on property will kill the grass for a long period of time.  Thus, produced water has been a 100% waste product and almost all of it has been traditionally, injected back into deep formations through injection wells.

Technological advances have transformed  produced water from a waste product into a potentially valuable resource.  Therefore, now we have disputes over ownership of this water.

The importance of Cactus Water Services LLC v COG Operating LLC is that the Texas Supreme Court (TSC) will now decide whether this produced water belongs to the landowner or the oil and gas company.  Over 14 briefs have been filed with the TSC from different entities.  Some on behalf of the oil and gas companies and some on behalf of the landowners.

You don’t have to wait and see how the TSC answers this issue.  You should be thinking ahead, particularly if you enter new oil and gas leases.  These leases should have provisions clearly addressing the ownership of produced water and any associated royalties.  Even if the TSC determines the oil and gas companies own the produced water, there is a way to contract in your oil and gas lease to ensure that you, the landowner, get a royalty and a revenue back.

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While the monetary compensation is certainly an important factor for a landowner to consider, the nonmonetary  terms of the easement may be more important and more valuable.  Therefore, it is imperative to document any statement or promise made by the company seeking the pipeline into a written agreement.

Each property is unique, and the following considerations may not apply the same way to different properties because of their specific use and characteristics.  While this list is based on a pipeline easement, these terms may also be helpful in negotiating other easements, such as those for electric or transmission lines   (Entergy Reedy Creek project), water, wastewater, drainage, or related infrastructure easements.

I will start with a money saving tip.  Because most attorneys bill by the hour, a client can save considerable fees by doing as much legwork as possible before going to the attorney’s office.  For example, a landowner could collect necessary documents such as the legal description or plat of the property, saving the attorney the time of locating that information.  Another time saver would be for the landowner to prepare a draft of the easement agreement or a list of terms they desire.  This will save time when sitting down with the attorney.

Check on Eminent Domain Authority:

Often the company seeking the pipeline will tell the landowner they have the ability to obtain what they want through eminent domain.  However, you should check to see if the company is validly registered with the State Comproller’s office as having eminent domain power.  Ask the company representative for a copy of the statute that grants them eminent domain power and evidence supporting their claim as a common carrier.  If it is a transmission line, obtain a copy of the company’s Certificate of Convenience and Necessity from the Public Utility Commission.  This will explain what condemnation power the company has and may provide additional information about the proposed project.

Determine Compensation:

Generally, payment is based per foot, per acre or per rod (a rod is 16.5 feet) of the pipeline.  Consider seeking payment per square foot rather than per foot or per rod  to be adequately compensated for the entire area the company will use.  It is common for the company to seek a temporary work area, as well, and you should seek compensation for this temporary work area.

It is important to know that Texas courts recognize remainder damages for the decreased value of the remainder of the property outside of the easement strip.  For instance, if a pipeline splits a 10 acre tract, the acreage remaining outside the easement will likely be worth less per acre than if the 10 acres were sold as a whole.

You should also discuss the payment’s tax implications with your CPA or financial advisor.  How the payment is described or structured will make a difference.

The following list of key points may be helpful:

• Seek a Specific Easement
• Seek a Nonexclusive Easement
• Limit Easement to One pipeline
• Determine Pipeline Diameter
• Require a Specific Pipeline Depth
• Request Payment for Damages
• Have a Timber Management Company or Agricultural Consultant evaluate the property
• Have Property Appraised
• Specify Fencing Requirements
• Include Repairs to existing roads
• Determine Maintenance requirements
• Define when the easement will terminate
• State Requirements for Removing Pipe and Facilities
• State Remedies for Violating Agreement
• Include Liability and Indemnification Provisions
• List Landowner as “Additional Insured”
• Do Not be responsible for Warranty of Title
• Limit Terms of Transferability
• Request a Most-Favored-Nations Clause
• Use Choice of Law provision
• Include a Forum Clause

Finally, a licensed attorney familiar with easement negotiation issues should review all pipeline easement agreements BEFORE signing.  Although hiring an attorney who specializes in representing landowners in these type of transactions may be an additional cost, it could save money in the long run by preventing a dispute from arising due to an unclear or inadequate easement agreement.  Additionally, the fee arrangement with attorneys in these matters is usually a contingency fee agreement.  This means the attorney is paid based on the increased amount of compensation they produce for the landowner who’s property is being taken.  So, no cost up front.

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Issued on February 7, 2024, with a stated purpose of “combat[ing] and deter[ing] money laundering in the U.S. residential real estate sector by increasing transparency, the Residential Rule requires certain professionals, including attorneys in certain transactions, to file a report with FinCEN that provides a wealth of information about certain real estate transactions and the parties to those transactions.

FinCEN, as part of the rulemaking process, invited public comments on the proposed rule until April 16, 2024.  Only 624 comments were submitted and are currently under review.  The Residential Rule will become effective one year after the final rule is published.  As of today, I am not aware of the final rule being published.

While some of the information required under the Corporate Transparency Act (CTA) overlaps with the Residential Rule, there are some key differences between the two.  First, the CTA applies to a broad range of transactions whereas Residential Rule transactions focus specifically on non-financed residential real estate transactions to certain legal entities and trusts.  I interpret this to mean cash deals.  Second, the Suspicious Activity Report (SAR) required by the CTA is replaced with a Real Estate Report, which is reported to be a streamlined version of the SAR.  Third, the CTA beneficial ownership information focuses on broad money laundering trends and reports on the beneficial owners of certain legal entities (i.e., corporations, limited liability companies, etc); but the Real Estate Report provides both beneficial ownership information and real estate transactional information in a single report.  Fourth, reports filed under CTA will be electronically stored in a separate database with separate access privileges from Real Estate Reports.

It has been widely accepted for quite sometime that one of the benefits of trust is that they are private.  However, the Residential Rule will require disclosure of the settlor/grantee of the trust, trustee, and beneficiary of the trust.

Furthermore, the Residential Rule will apply to “residential real estate.”  This is defined as (I) real property located in the United States containing a structure designed principally for occupancy by one to four families; (ii) vacant or unimproved land located in the United States zoned, or for which a permit has been issued, for the construction of a structure designed principally for occupancy by one ot four families; or (iii) shares in a cooperative housing corporation.

Many communities, Huntsville included, are pushing to create Zoning.  This makes one ponder “why?”  We have long valued our privacy and property ownership.  However, little by little it is being chipped away or worse, given up by posting our lives on social media.  But I digress.

The American Bar Association has opposed this proposed Residential Rule and many other real estate affiliated organizations.  Additionally, the Texas Disciplinary Rules of Professional Conduct Rule 1.05 and the American Bar Association Disciplinary Rule 106 prohibit decimation of confidential information.  The rules already allow attorneys to reveal unprivileged information and require attorneys to reveal confidential information if a client is likely to commit a criminal or fraudulent act likely.  So any argument the Residential Rule is required to prevent these transactions is bunk.

The proposed Residential Rule, if adopted, will become a final rule that could take effect as soon as next year if the Secretary is able to draft a final rule.  Based on the number of comments received, it is likely that the rule may not be finalized until next year with a 2026 effective date.  Either way, all comments have been received so it is now in FinCEN’s hands.  This is yet another reason to VOTE!  If the majority sits by and does nothing, then we will put folks in power that care nothing about our rights and freedoms.  The elected will continue to infringe on our privacy and tax Americans into poverty.  Our only hope is to elect representatives that want to cut government regulation and taxation.

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A landlord and tenant relation exists between a landowner as landlord and another party occupying the landowner’s real property as tenant.  With this relationship come certain duties and responsibilities.

The relationship is always created by contract, but the contract may be either verbal or written.  Additionally, the term of the lease can vary from month to month, semester to semester or school year to school year.

Most lease agreements involve a security deposit.  A security deposit is any advance of money, other than an advance payment of rent, that is primarily intended to secure performance under a lease of a dwelling.  A landlord has the duty to refund the security deposit to the tenant on or before the 30^th day after the date the tenant surrenders the premises.  A landlord may be liable for withholding  the security deposit in bad faith in certain situations.  This could subject the landlord to monetary damages amounting to three times the amount of the deposit  and the tenant’s reasonable attorney’s fees.   Additionally, a landlord is prohibited from retaining any portion of a security deposit to cover normal wear and tear.  Finally, for those landlords who may use written leases stating that the return of the security deposit is contingent upon advance notice of surrender of the premises, then be aware that such language must be underlined or printed in conspicuous bold print in the lease.  So landlords should be very careful when dealing with the return of a tenant’s security deposit.

Landlords should also inspect their security devices.  Texas law requires certain security devices be installed on leased premises.  Leased premises includes rooms in a dormitory or rooming house, mobile home, single family house, duplex, triplex, apartment or condominium.  Windows and doors have certain requirements depending on their design and year of construction.  For example, conventional, sliding and French doors all have different requirements.

Another little known fact is that landlords must disclose the name and address of the holder of record title, according to the deed records in the county clerk’s office, of the dwelling rented by the tenant.  Failure to comply  with this could result in the landlord being liable for one month’s rent plus a monetary penalty, court cost and attorney’s fees and termination of the lease.

In Texas a landlord has no duty to make repairs in the absence of a covenant or agreement to do so.  A tenant’s main remedy for breach of a landlord’s express covenant to repair is an action for the recovery of damages resulting from the breach. Generally, the breach does not authorize a tenant to rescind the lease contract or enable a tenant to escape liability for the payment of rent. The tenant may, however, vacate and relieve himself or herself from liability for further rent when, as a result of the breach, the premises become untenantable or unsuitable for the purposes for which they were rented.  A landlord’s failure to provide a promised service or facility will enable the tenant to recover damages due to such failure.

When the tenant breaches the lease agreement, then the landlord may begin a process known as eviction.  This involves filing a lawsuit.  Such lawsuits are filed in the Justice of the Peace court that serves the area where the property is located.  Unless you are familiar with such suits, you should contact an attorney to assist you.

Landlord and tenant relationships can be advantageous for both the landlord and the tenant.  However, if you are a landlord, or tenant, and things go wrong you would be wise to contact an attorney.  Doing so could save you from a more costly result down the road.

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